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Microcap & Penny Stocks : SVCDQ, temporary board?
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To: Arthur Tang who wrote (57)9/28/2000 7:46:51 AM
From: Arthur Tang  Read Replies (1) of 66
 
Yesterday, resistance was met with a dump of 100,000 shares. This may initiate a quick retest of support. Hopefully, fundamentals will help to test resistance again some time down the line.

Unfortunately, fundamentals are as bad as ever. According to the bankruptcy report, for many months, the revenue has not budged. That means traffic has not improved. Even with the anticipated $1.2 billion sales during X'mas; stockholders' equity will still be negative by $100 million if we are lucky. Web site presence has not been proven by the revenue reported. If web site could contribute $100 million during X'mas; it is still a big iffff. Overhead at the headquarters stays way too high at just around $30 million/month. Profit margin at the stores looks manageable.

So, what to do? What to do?

Consolidation did reduce cost of operation but the overhead at the headquarters is way too high. Fortunately, the monthly revenue did not decrease. So expanding product lines may help. It is easiest to expand them on the web or the Kiosk with direct shipments to the customers. SVCDQ had some success with TV advertizing but they are expensive. They may want to advertize in house organs of organizations, such as organized labor, AARP, AAA and other national organizations?

So how much is there with all the hidden value SVCDQ has in real extate holdings? Nothing reported yet. It will be a big asset in the balance sheet for the stockholders' equity when the financial plans(changing real estate to cash) are executed. There may be hope afterall.
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